Businessweek
Sunday Strategist: How Saudi Aramco Boosted Its IPO Price
Breaking down the boldest bets in business
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Saudi Aramco wanted to sell a lot of shares at a high price, but the smart money showed no interest. So the company’s bosses had a tough choice to make. They could cut the price, or they could reduce the size of the sale. They opted mostly for the latter.
Whether that was the right choice is an interesting question. We may not know the answer for weeks or even years. Ultimately it’s a question of high vs. low pricing strategy—a dilemma that’s familiar to lots of businesspeople, whether they’re selling haircuts or jet aircraft.